Amazon’s Lord of the Rings MMO is Dead – Here’s What Went Wrong

The End of an Epic Quest

Amazon’s ambitious Lord of the Rings MMO has been officially cancelled following massive layoffs affecting 14,000 corporate jobs across the company. The news came from a now-deleted LinkedIn post by senior gameplay engineer Ashleigh Amrine, who confirmed that both she and her team working on the Middle-earth project were let go. What seemed like a dream project for fans of Tolkien’s universe has become yet another casualty in Amazon Games’ troubled history.

What Happened This Week

Amazon announced sweeping job cuts on Tuesday that hit its gaming division particularly hard. The company confirmed it was scaling back significantly from MMO development and would stop creating new content for its existing MMO, New World. According to reports from Bloomberg, the company was especially focused on cutting back on MMO projects, with most layoffs centered in Amazon’s Irvine and San Diego offices.

In her LinkedIn post, Amrine wrote: “This morning I was part of the layoffs at Amazon Games, alongside my incredibly talented peers on New World and our fledgling Lord of the Rings game (y’all would have loved it).” The phrase “y’all would have loved it” strongly suggests the game would never see the light of day.

Amazon’s History with LOTR Games

This isn’t Amazon’s first rodeo with Middle-earth. Back in 2019, the company announced its first Lord of the Rings MMO project, which looked promising at the time. However, that dream died in 2021 following a contractual dispute when Tencent acquired Amazon’s development partner Leyou Technologies. The project was shelved before players ever got to experience it.

Amazon Games gave it another shot in 2023, announcing a partnership with Embracer Group, the current rights holder of Middle-earth. This new project was billed as an “open-world MMO adventure” that would span stories from The Hobbit through the entire Lord of the Rings trilogy. According to reports, the game was being developed for both consoles and PC, but never advanced far enough into production to go public.

Why Amazon Games Couldn’t Make It Work

ChallengeIssue
MMO Development CostsMMOs require massive budgets and years of development
Live Service ModelRequires constant content updates to keep players engaged
Finding a Unique HookThe Lord of the Rings Online already dominates the space since 2007
Amazon’s Game Track RecordPrevious games like New World struggled to maintain player interest

Earlier this year, Amazon Games VP Christoph Hartmann discussed the challenge of developing a Lord of the Rings MMO. He explained that the team wanted to create something different and not just rehash what already existed. The problem was that The Lord of the Rings Online, which launched way back in 2007, still receives updates and maintains a dedicated player base. Amazon faced the tough question of what could possibly make their version stand out.

Beyond finding a unique angle, MMO development is expensive and risky. These games demand substantial budgets, years of development time, and a commitment to continuous content updates after launch. One misstep can drain millions, and Amazon’s track record with games hadn’t inspired confidence. New World launched with issues and struggled to maintain momentum despite being moderately successful by Amazon standards. Other projects like Breakaway, Crucible, and King of Meat failed to gain traction.

The Bigger Picture at Amazon Games

This cancellation reflects a much larger problem at Amazon Games. Since 2016, the company has invested billions trying to compete with Steam and create its own gaming empire. Breakaway was scrapped in 2018. Crucible went through a clumsy soft launch, got pulled back into beta, and was ultimately canceled. New World managed to ship but faced criticism for quality issues.

CEO Andy Jassy justified the massive layoffs by stating that Amazon needs to be leaner and more focused on artificial intelligence. According to company leadership, the company identified an “excess of bureaucracy” that slowed down innovation. While that might sound reasonable on paper, the end result for employees and gamers is devastating.

What This Means for Gaming

The cancellation signals that even premium IP with built-in fanbases cannot guarantee success in modern game development. The Lord of the Rings carries one of the most recognizable brands in entertainment, yet Amazon couldn’t figure out how to make it work commercially. This reinforces a harsh truth about MMOs in 2025: the genre is extremely challenging, and throwing money and famous franchises at the problem doesn’t automatically create winning games.

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FAQ

Was the Lord of the Rings MMO ever officially confirmed canceled by Amazon?
Amazon hasn’t made an official public statement confirming the cancellation. However, the LinkedIn post from an Amazon engineer directly involved in the project strongly indicates the game is dead. Neither Amazon nor Embracer Group responded to media requests for comment.

How long was Amazon working on this Lord of the Rings MMO?
The current version was announced in May 2023 and was in development for approximately two years before being shelved. The project never advanced far enough into production to reach the public testing phase.

Will The Lord of the Rings Online get affected by this news?
The Lord of the Rings Online is a separate game developed and maintained by Standing Stone Games. It’s not connected to Amazon’s project, so this cancellation shouldn’t impact it. The game continues to receive updates.

Is this the first time Amazon tried making a Lord of the Rings game?
No, this is the second attempt. Amazon’s first LOTR MMO was announced in 2019 but was canceled in 2021 after Tencent acquired its development partner Leyou Technologies.

What will happen to the developers who were laid off?
According to Amazon’s announcement, affected employees have 90 days to find a new role within the company. If unsuccessful, they receive severance pay, continued health benefits, and outplacement services to help find positions elsewhere.

Did Amazon Games have other projects in development?
Yes, Amazon had several projects in the pipeline including an untitled Tomb Raider game, another unnamed online RPG, and an open-world driving game. The status of these projects following the layoffs remains unclear.

Laptop displaying video game

Final Thoughts

The death of Amazon’s Lord of the Rings MMO represents more than just another failed game project. It’s a sobering reminder that even well-funded companies with access to beloved franchises can’t guarantee success in the competitive gaming market. Amazon spent billions trying to break into gaming over the past decade, and despite some modest wins, the company decided to pivot away from MMO development entirely.

For fans hoping to experience a new Lord of the Rings game, options remain limited. The Lord of the Rings Online continues to welcome players, and there’s always hope that another developer might eventually tackle Middle-earth. However, after Amazon’s experience, any studio considering the challenge will think twice about the time, money, and resources required to bring Tolkien’s universe to life as an MMO.

The gaming industry moves quickly, and today’s ambitious project becomes tomorrow’s cautionary tale. Amazon’s journey from confident entrant to MMO retreat in less than a decade should serve as a wake-up call about the realities of game development in 2025.

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